Copper Hits Record High on London Metal Exchange

Copper prices hit a record high in trading on Wednesday, driven by a weaker US dollar, concerns about supply shortages and a drawdown in London Metal Exchange (LME) warehouses.

Three-month copper futures on the LME closed at $11,348 a tonne, up 1.8% from the previous session’s close. Earlier in the session, prices had risen to $11,434.5 a tonne, a record high.

LME data released yesterday showed that the amount of metal in the exchange’s warehouses fell to 105,275 tonnes, the lowest since July. The market is supported by growing expectations that the Federal Reserve will cut interest rates next week, as lower borrowing costs typically stimulate economic activity and demand. This also contributes to the weakening of the US dollar. The DXY dollar index fell 0.42% on Wednesday.

On the LME, aluminum prices rose 0.5% to $2,880 per tonne, zinc – 0.2% to $3,066 per tonne, and nickel – 0.7% to $14,895 per tonne.